Flat Dollar

DEFINITION of 'Flat Dollar'

A fixed dollar amount, generally in the context of fees or commissions paid for services. For transactions above a certain minimum size, flat dollar fees may be preferable to fees charged on a percentage basis. Flat dollar amounts are usually specified in contracts and thus are independent of transaction sizes.

BREAKING DOWN 'Flat Dollar'

Flat dollar fees on stock transactions charged by online brokerages have made it much more economical for the average retail investor to trade stocks. For most services, cost-conscious consumers combined with companies competing for their business will usually cause flat dollar fees to replace fees based on a percentage of the transaction's value.

RELATED TERMS
  1. Brokerage Fee

    A fee charged by an agent, or agent's company to facilitate transactions ...
  2. Exchange Fees

    A type of investment fee that some mutual funds charge to shareholders ...
  3. Service Charge

    A type of fee charged to cover services related to the primary ...
  4. Transaction Costs

    Expenses incurred when buying or selling securities. Transaction ...
  5. Finance Charge

    A fee charged for the use of credit or the extension of existing ...
  6. Junk Fees

    Nebulous charges assessed at the closing of a mortgage that go ...
Related Articles
  1. Managing Wealth

    Understanding Brokerage Fees

    Agents charge brokerage fees for facilitating transactions between buyers and sellers.
  2. ETFs & Mutual Funds

    A Guide To Investor Fees

    Fees are one of the most important determinants of investment performance and something that every investor should know.
  3. Retirement

    Are Fees Eating Up Your Nest Egg?

    You may not be able to avoid all fees associated with retirement planning, but you should know what you’re being charged for. Here's a list of common fees.
  4. Financial Advisor

    Are Financial Advisor Fees Too High?

    Fees charged by financial advisors run the gamut. Are you getting a fair deal or paying too much?
  5. Retirement

    Are Fees Depleting Your Retirement Savings?  

    Each retirement account will have a fee associated with it. The key is to lower these fees as much as possible to maximize your return.
  6. Investing

    How a 1% Annual Fee Can Ruin Your Nest Egg

    What kind of impact does an annual 1% fee have on your portfolio? The answer may surprise you.
  7. Financial Advisor

    How To Optimize Your Portfolio and Reduce Fees

    Investment fees aren't avoidable altogether, but there are strategies investors can employ to keep those fees at bay and reduce the impact on returns.
  8. Personal Finance

    How Foreign Transaction Fees Work

    Using a credit card when you travel can be costly. Here's what you need to know about foreign transaction fees – plus tips on making purchases abroad.
  9. Managing Wealth

    Changes To Your Checking Account

    Checking accounts have evolved a lot over the years. Here are the five biggest changes that can affect your wallet.
  10. Investing

    Cut Your Bank Fees

    Find out how to get the bank to pay you for using their services, not the other way around.
RELATED FAQS
  1. What fees can I expect from a financial adviser?

  2. What are typical trust fund management fees?

    Learn about trust fund management fees, such as the annual management fee, annual expense ratio, brokerage commissions and ... Read Answer >>
  3. As an investor can I take a management fee?

    I have invested in one business - about 200k USD as capital amount. Can I take management fees on my capital amount? Company ... Read Answer >>
  4. My FA recommended a wrap fee for me, is that appropriate?

  5. How can I prevent commissions and fees from eating up my trading profits?

    First off, understand that there is no universal system regarding trading commissions charged by brokerage firms. Some charge ... Read Answer >>
  6. When is an underwriting fee too high on a commercial loan?

    Learn about underwriting fees and when they're too high. If the underwriting fee exceeds 2% of the total loan size, the fee ... Read Answer >>
Hot Definitions
  1. Put Option

    An option contract giving the owner the right, but not the obligation, to sell a specified amount of an underlying security ...
  2. Frexit

    Frexit – short for "French exit" – is a French spinoff of the term Brexit, which emerged when the United Kingdom voted to ...
  3. AAA

    The highest possible rating assigned to the bonds of an issuer by credit rating agencies. An issuer that is rated AAA has ...
  4. GBP

    The abbreviation for the British pound sterling, the official currency of the United Kingdom, the British Overseas Territories ...
  5. Diversification

    A risk management technique that mixes a wide variety of investments within a portfolio. The rationale behind this technique ...
  6. European Union - EU

    A group of European countries that participates in the world economy as one economic unit and operates under one official ...
Trading Center